Franshion Properties (China) Ltd. May 11

AbstractParental support from Sinochem Corp. Good execution track record, and material recurring income from property leasing and hotels High-quality assets and valuable land bank in prime locations High project concentration and limited geographic diversification Substantial capital spending for land acquisitions and new developments Volatile financial performance due to volatile property sales The rating on Franshion Properties (China) Ltd. reflects the company's 'bb+' stand-alone credit profile (SACP) and a one-notch uplift because of parental support from Sinochem Corp. The SACP on Franshion reflects the company's high project concentration, limited geographic diversification, substantial capital spending needs, and volatile financial performance. The company's recurring income from property leasing and hotel operations, the high quality of its leasing and development assets, and good execution...

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